Enterprise Products Partners L.P.

SEC Filings

10-Q
GULFTERRA ENERGY PARTNERS L P filed this Form 10-Q on 05/15/1996
Entire Document
 
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under the term facility and $102.5 million under the revolving credit facility.
Interest expense related to the Partnership Credit Facility totaled $0.6
million for the three months ended March 31, 1996.  Such amount included
commitment fees and amortization of debt issue costs of $0.2 million.  During
the three months ended March 31, 1996, the Partnership capitalized $2.3 million
of interest costs in connection with construction projects in progress during
the period.  As of May 10, 1996, borrowings totaled $75.0 million under the
term facility and $112.0 million under the revolving credit facility.  There
are no letters of credit currently outstanding under the revolving credit
facility.

Uses of Cash.  The Partnership's capital requirements consist primarily of (i)
quarterly distributions to holders of Preference Units and Common Units and to
Leviathan as general partner, (ii) expenditures for the maintenance of the
pipelines and the construction of additional pipelines and related facilities
for the transportation and processing of gas and oil in the Gulf, including
Phase II of the Poseidon Oil Pipeline, (iii) management fees and other
operating expenses and (iv) debt service on its outstanding debt.  In addition,
Flextrend Development's future capital requirements will consist of
expenditures related to the development of the Viosca Knoll Block 817, Garden
Banks Block 72 and Garden Banks Block 117 leases.

For every full quarter since its inception, the Partnership has declared and
subsequently paid a cash distribution to holders of Preference Units and Common
Units in an amount equal to or exceeding the Minimum Quarterly Distribution of
$0.55 per Unit per quarter ($2.20 per Unit on an annualized basis). Commencing
in the third quarter of 1993, the Partnership increased the quarterly
distribution to $0.60 per Unit.  Beginning with the quarter ending March 31,
1996, the Partnership increased the quarterly distribution to $0.65 per Unit.
At the current distribution rate of $0.65 per Unit, the Partnership anticipates
making quarterly Partnership distributions of $8.1 million in respect of the
Preference Units, Common Units and general partner interest ($32.4 million on
an annual basis).  On January 22, 1996, the Partnership declared a cash
distribution of $0.60 per Preference and Common Unit for the period from
October 1, 1995 through December 31, 1995.  This distribution was paid on
February 14, 1996 to Unitholders of record as of January 31, 1996.  On March
26, 1996, the Partnership declared a cash distribution of $0.65 per Preference
and Common Unit for the period from January 1, 1996 through March 31, 1996.
This distribution will be paid on May 15, 1996 to Unitholders of record as of
April 30, 1996.

After taking into account the reduction in cash flow from Tatham Offshore as a
result of the restructuring of certain agreements, as discussed above, the
Partnership believes that it will be able to continue to pay at least the
current quarterly distribution of $0.65 per Preference Unit for the foreseeable
future.

On June 30, 1995, Flextrend Development acquired the working interests owned by
Tatham Offshore in the Assigned Properties for $30.0 million, subject to
certain reversionary rights.  Flextrend Development will need additional
capital to fund further development of its properties. Flextrend Development
anticipates funding future development costs through borrowings under the
Partnership Credit Facility, as amended, and operating cash flow.

In February 1996, Poseidon LLC and Texaco Trading formed POPCO to construct,
own and operate the Poseidon Oil Pipeline.  Pursuant to the terms of the
organizational documents, Poseidon LLC initially contributed assets, at net
book value, related to the construction of the initial phase of the Poseidon
Oil Pipeline as well as certain dedication agreements and Texaco Trading
initially contributed an equivalent amount of cash as well as its rights under
certain agreements.  Poseidon LLC and Texaco Trading each also agreed to
contribute 50% of the additional construction and installation costs of the
Poseidon Oil Pipeline, currently estimated at $75.0 million in the aggregate.
The Partnership has fully funded its portion of the capital requirements of
POPCO for the construction of Phase I of the Poseidon Oil Pipeline.  The
Partnership anticipates that POPCO's future capital requirements, including
estimated costs of





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